The city of Rotterdam today invested in Icos Capital Fund III (ICF III), a €50m ($52m) cleantech and sustainability-focused vehicle created by Netherlands-based venture capital firm Icos Capital.

Process engineering company Bühler, paints and chemicals producer AkzoNobel and steel processing and finishing business Wuppermann have also made strategic investments in the fund, helping to achieve a first close.

ICF III will focus on opportunities in the chemical, food and materials sectors, particularly seeking out companies working on technologies around renewable resources, sustabinable processes and smart production systems.

Icos Capital bills its approach to funding startups as “collaborative corporate venturing”, saying that the addition of corporate partners to its VC funds means investments can be better validated and portfolio companies benefit from add-on value during the scaling process.

Maarten Struijvenberg, vice-mayor for employment and economy at the city of Rotterdam, said: “As an investor in Icos’ previous fund (ICF II) we have seen the benefits of being part of a consortium with strong industrial players that support cleantech start-ups getting into the markets. We look forward to continue our cooperation with Icos Capital and its partners.”